Cost of Electricity by Country 2024

Electricity is one of humanity's most vital resources, a near-ubiquitous form of energy essential to daily life in most parts of the world. However, because a country's ability to generate electricity is heavily influenced by factors that include the country's geographical location, geological makeup, level of development and technological advancement, and whether it is high-, middle-, or low-income, the price of electricity can vary widely from one country to the next.

Electricity can be generated using a wide variety of methods, from simple water wheels and windmills to coal-fired power plants, solar panels, hydroelectric dams, and nuclear power plants. Each of these methods has its own costs, strengths, and weaknesses, and most are better suited to some countries and locations than to others.

Electricity prices may also be influenced by world events, particularly if those events impact the price of fossil fuels, such as coal and natural gas, which are often burned by power plants to generate electricity. Russia's 2022 invasion of Ukraine disrupted the export of fossil fuels from both Russia and Ukraine, causing a spike in the price of electricity (and many other products) throughout the world, and Europe in particular.

Top 10 Countries With the Highest Electricity Costs:*

* Note: According to some sources, the cost of electricity in various island nations, including not only Bermuda and the Cayman Islands but also Vanuatu, Micronesia, Solomon Islands, and others, may be higher than in Denmark. However, many of these nations are excluded from most documented sources' lists, and their data is difficult to verify.

Countries with high prices for electricity

Denmark

Electricity costs more in Denmark than in most other countries in Europe. For one kilowatt-hour, Denmark pays about $0.384 USD as of 2024. Several factors, including infrastructure, geography, and taxes, primarily affect the price. Denmark has some of the highest tax rates on electricity. About half of the electricity price in Denmark is attributed to an additional tax.

Germany

Not far behind Denmark, Germany has the second-highest electricity cost in the world, according to most sources. On average, Germans pay approximately $0.365 (USD) per kilowatt-hour for electricity. As in Denmark, about half of Germany's per-kilowatt-hour rate can be attributed to high taxes on electricity production. Germany saw a spike in the cost of electricity following 2012. After the Fukushima nuclear disaster in Japan, Germany closed many nuclear reactors, creating a much greater demand for electricity from traditional sources. Before 2012, electricity prices in Germany were more closely aligned with the costs of electricity in the United States (which are markedly lower).

United Kingdom

Residents of the UK pay $0.368 per kilowatt-hour of electricity consumed, on average. The UK's high prices can be largely attributed to the island nation’s location. Heavy reliance on traditional fossil fuels for electricity production can also make the cost of electricity prone to extreme fluctuations as the oil market changes over time.

Austria

Austria's average price for electricity is $0.360. In 2022, the Austrian government experimented with a per-household price cap on electricity, but the plan proved controversial.

Italy

Italians pay an average of $0.457 per kilowatt hour for electricity. Italy generates roughly 50% of its electricity from the burning of natural gas. Because of this, the price of electricity can be quite volatile, impacted greatly by fluctuations in the price of natural gas. For example, even the government-regulated price of electricity, which impacts 41% of the country's households, fell by 19% in Q1 2022 and rose by 58% in Q4 2022.

Belgium

Belgians pay just over $0.365 USD for every kilowatt-hour of electricity they consume, as of 2024. While a good portion of this cost is related to taxes, Belgium's geographical location makes it reliant on neighboring countries for much of its electricity production, which amplifies the cost of electricity.

Bermuda

Residents of Bermuda pay an average of $0.458 per kilowatt-hour of electricity. One of the smallest countries in the world, Bermuda has a tiny land area of roughly 53.2 km² (20.5 mi²) with a population of more than 65,000 residents. As such, the country lacks the space necessary for large-scale power plants, such as solar arrays, wind farms, or nuclear facilities. It also lacks rivers, which eliminates the option of hydroelectric power. As a result of these conditions, Bermuda relies almost exclusively upon imported—and expensive—fuel oil to generate electricity.

Spain

Spanish citizens can expect to pay about $0.226 per kilowatt-hour of electricity. This cost is moderate, compared to that in Denmark, Germany, and many other European countries. Much of the cost of electricity is affected by this country's reliance on neighboring countries for electrical power.

Cayman Islands

One of many Caribbean island nations, the Cayman Islands are a British Overseas Territory where the average price of electricity is $0.433 per kilowatt-hour as of mid-2024. 97.4% of the Cayman Islands' energy came from the burning of diesel fuel in 2019, but the country has adopted a plan to get 25% of its energy from renewable sources by the year 2025, increasing to 70% by 2037.

Czech Republic

With a per-kilowatt-hour price of $0.367, electricity in the Czech Republic posted the highest year-on-year cost increase in all of Europe in 2022. This was largely attributed to inadequate preparation on the part of the government, which left the country poorly equipped to deal with the effects of Russia's 2022 invasion of Ukraine on the fossil fuel trade. In October 2022, the Czech government moved to establish caps on the prices of both electricity and natural gas for its citizens. As of mid-2024, the per-kilowatt-hour price in the Czech Republic is $0.359.

Rwanda

Rwanda has one of the highest electricity costs in mainland Africa, costing Rwandan citizens about $0.193 per kilowatt-hour. While this is undoubtedly lower than in most European countries, it is higher than in the United States or such oil-producing countries as Iran or Saudi Arabia.